On September 9, 2025, Fresh Energy and the Minnesota Center for Environmental Advocacy (MCEA) filed supplemental comments in the Future of Gas docket (Docket No. G999/CI-21-565) at the Minnesota Public Utilities Commission (PUC) urging Minnesota regulators to end gas line extension incentives for natural gas utilities. These comments are in addition to Fresh Energy and MCEA’s initial and reply comments on the record and mark the end of the comment period for this proceeding.
Fresh Energy and MCEA urged the PUC to end line extension allowances, a decades-old policy under which existing ratepayers pay the costs for the construction of additional infrastructure to connect new buildings to the gas system. This outdated policy directly undermines Minnesota’s climate and electrification goals by incentivizing gas system growth instead of investing in energy efficiency and beneficial electrification measures that help improve homes and reduce overall energy use for customers.
Line extension subsidies are also unfair for existing utility customers. Fresh Energy commissioned an expert report that examined the economic analyses used by Minnesota’s investor-owned gas utilities to justify their line extension subsidies. The report found that every utility underestimates the costs of adding customers to the system and overestimates new customer revenues. Gas line extensions are outdated, inaccurate, and place undue financial burden on existing customers.
“Ending gas line extension allowances is an essential policy change required to meet Minnesota’s climate goals,” said Caitlin Eichten, director, building energy transition at Fresh Energy. “With buildings as our fastest-growing source of emissions in the state, utilities should direct financial incentives toward clean energy solutions, not fossil fuel expansion.”
“The time to end line extension allowances is now,” said Amelia Vohs, climate program director at MCEA. “Other states have already ended subsidies for the gas system because there are now better options for heating our homes that are safer for customers and the climate. Minnesota shouldn’t wait.”
The PUC opened the comment period on May 5, 2025 and is tasked with evaluating changes to natural gas utility regulatory and policy structures needed to meet or exceed Minnesota’s greenhouse gas emissions reductions goals in the Future of Gas docket, which was initiated in 2021. This docket opens an important opportunity to reconsider how Minnesota gas utilities can reach net-zero emissions in a way that is equitable and affordable to all.
Line extension policies encompass a utility’s construction of gas mains, service lines, and meters to serve a new customer. Ending line extension allowances will help Minnesota meet its emissions targets and goals of delivering safe, affordable, clean energy for all Minnesotans.
Fresh Energy and MCEA look forward to working with the Commission on this critical policy change.
